Winding Up — Pfleiderer causes a stir in the society pages

9fin team

7 June 2024•5 min read

Dearest reader,

This author wishes to inform you of this week’s most head-turning distressed news.

A flurry of trading was afoot as Strategic Value Partners (SVP) offered to stump up the cash for wood products manufacturer Pfleiderer. The news of a possible €80m to €100m equity cheque sent the SSNs up seven points yesterday (6 June). Investors in a fellow portfolio company of SVP’s Kloeckner Pentaplast seem to have got excited by the possibility of the sponsor’s generosity spreading as its SUNs have also been quoted 8 points higher in the past week at 58.4-mid today, as per 9fin’s data.

This author can also reveal that whispers and rumours on certain companies’ restructuring plans can be put to rest. German real estate company Demire revealed the terms of an A&E transaction for bonds maturing October. 9fin analyses the key terms. Another one cutting it close to the bone is ports operator R-Logitech, which is also asking to extend its bonds maturing in June by two years, according to a statement hot off the presses today (7 June).

Meanwhile debt collectors are still a popular point of conversation on the ton’s lips as 9fin understands Perella Weinberg Partners is in discussions with a group of Lowell GFKL’s bondholders and is close to securing an appointment as their financial advisor.

A company which had the court rooms full of spectators, Adler, has taken to the stage again for a second act, with a new restructuring plan. 9fin delves into the details here. Dutch coatings manufacturer IGM Resins has on the other hand exited stage left, as it no longer required a sanction hearing for an English Scheme after receiving 100% consent for its restructuring.

This author’s reach spans all the way to Paris with all the tea on the advantages and shortcomings of the French safeguard process.

That is all for this week, gentle reader. I hope you found this edition enticing indeed!

Yours truly,

Lady Whistledown

This week’s news

Adler Group — The distressed German real estate group launched its second UK restructuring plan, issuing a practice statement letter. 9fin’s Freddie Doust takes a look at what the new plan actual does, how many classes will be convened, and the routes open to dissenting creditors.

Altice International — The troubled telco’s secured bonds due 2029 traded down on Tuesday after Moody’s downgraded the company’s corporate credit rating to Caa1 from B3 earlier in the day.

Demire — The German commercial real estate group unveiled its restructuring proposal. Apollo, Demire’s sponsor, has committed to inject up to €100m in equity, which the group will use alongside balance sheet cash to fund a partial tender offer on the bonds at a maximum price of 76.25%.

IGM Resins — All of IGM Resins’ secured lenders have acceded to the group’s recapitalisation plan, allowing it to implement its proposals on a fully consensual basis, according to 9fin’s sources.

Kloeckner Pentaplast — The German plastic packager released its Q1 24 (three months ending 31 March) results late last Friday. Management revised down its outlook for 2024-end liquidity by more than €20m without an explanation.

Lowell GFKL — Perella Weinberg Partners is in discussions with a group of the debt purchaser bondholders and is close to securing an appointment as their financial advisor, according to 9fin’s sources. Lowell faces maturities across its entire capital structure next year.

Medical Properties Trust — Judge Christopher Lopez of the US Bankruptcy Court of the Southern District of Texas approved the hospital real estate group’s motion for a 3% commitment fee and expense reimbursement for potential third-party lenders for new super-priority DIP financing. The race to provide MPT’s DIP financing has grown FILO lenders and two other undisclosed third-party bids.

Pfleiderer — The wood products manufacturer’s bonds have traded up on the news that sponsor SVP is contemplating an equity injection of between €80m-€100m. Pfleiderer has tapped Goldman Sachs as an advisor for Pfleiderer’s refinancing negotiations.

Headlines

7-June — Safeguard review — French advisors reflect on highs and lows of restructuring cases (9fin)

7-June — Perella chasing Lowell bondholder mandate (9fin)

7-June — Cloud 9fin — The ABCs of private credit LMEs, with Freshfields (9fin)

6-June — Pfleiderer bonds surge on talk of SVP equity injection and Goldman-led A&E (9fin)

6-June — Adler Group — A new restructuring plan (9fin)

5-June — Demire A&E sees Apollo fund discounted tender – Analysis (9fin)

5-June — Arini launches asset-backed and real estate strategy (9fin)

4-June — Altice International’s secured bonds due 2029 dip following Moody’s downgrade (9fin)

4-June — Top of the Flops — European Distressed Watchlist May 2024 (9fin)

4-June — Steward Health new DIP commitment and expense fees approved (9fin)

3-June — Steward Health FILO lenders offer $25m alternative DIP as they oppose proposed incentives to attract third parties (9fin)

31-May — Kloeckner earnings create unanswered questions – Q1 24 earnings review (9fin)

31-May — Steward Health looks to entice third parties to provide remainder of DIP with MPT being noncommittal (9fin)

Lateral Moves

Charlotte (Lamb) Wheeler has joined Kirkland & Ellis as restructuring partner in London. She was previously a senior associate in restructuring at Hogan Lovells.

Paul Hastings announced on Monday (3 June) that it hired a group of top-tier restructuring, private credit and special situations lawyers across multiple locations from King & Spalding.

Among the movers is Jennifer Daly, who was co-head of the global finance and restructuring practice and previously headed the private credit and special situations practice. It also includes Roger Schwartz, Matthew Warren, Christopher Boies, Zachary Cochran, Peter Montoni, Geoffrey King, Lindsey Henrikson, Robert Nussbaum, James Gallagher, and Jack Fitzpatrick.